Leggett & Platt, Incorporated
Leggett & Platt, Incorporated Fundamental Analysis
Leggett & Platt, Incorporated (LEG) shows moderate financial fundamentals with a PE ratio of 6.94, profit margin of 5.80%, and ROE of 26.15%. The company generates $3.9B in annual revenue with weak year-over-year growth of -7.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LEG's fundamental strength across five key dimensions:
Efficiency Score
WeakLEG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLEG trades at attractive valuation levels.
Growth Score
WeakLEG faces weak or negative growth trends.
Financial Health Score
ModerateLEG shows balanced financial health with some risks.
Profitability Score
ModerateLEG maintains healthy but balanced margins.
Key Financial Metrics
Is LEG Expensive or Cheap?
P/E Ratio
LEG trades at 6.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LEG's PEG of 1.40 indicates fair valuation.
Price to Book
The market values Leggett & Platt, Incorporated at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.82 times EBITDA. This is generally considered low.
How Well Does LEG Make Money?
Net Profit Margin
For every $100 in sales, Leggett & Platt, Incorporated keeps $5.80 as profit after all expenses.
Operating Margin
Core operations generate 5.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.15 in profit for every $100 of shareholder equity.
ROA
Leggett & Platt, Incorporated generates $6.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Leggett & Platt, Incorporated generates limited operating cash flow of $327.17M, signaling weaker underlying cash strength.
Free Cash Flow
Leggett & Platt, Incorporated produces free cash flow of $271.84M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.01 in free cash annually.
FCF Yield
LEG converts 17.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How LEG Stacks Against Its Sector Peers
| Metric | LEG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.94 | 24.84 | Better (Cheaper) |
| ROE | 26.15% | 1142.00% | Weak |
| Net Margin | 5.80% | 647.00% | Weak |
| Debt/Equity | 1.72 | 0.70 | Weak (High Leverage) |
| Current Ratio | 2.25 | 3.93 | Strong Liquidity |
| ROA | 6.65% | -8853.00% (disorted) | Weak |
LEG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Leggett & Platt, Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.44%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-250.45%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-55.07%
Industry Style: Cyclical, Growth, Discretionary
Declining